CRH transfer Secil stake to Semapa

CRH transfer 49% shareholding in Portuguese cement joint-venture to former partner Semapa

CRH plc, the Dublin-based international building materials company, have transferred their 49% shareholding in Secil, the Portuguese cement producer, to Semapa, their former joint-venture partner, for €564.5 million.

The transfer follows a call option exercised by Semapa and confirmed by an award issued by an Arbitral Tribunal in Paris, functioning under the Rules of Arbitration of the International Chamber of Commerce, at a valuation of €574 million.

The net proceeds received by CRH reflect the valuation set by the Arbitral Tribunal as adjusted for legal costs awarded to Semapa and other amounts due to Semapa by CRH.

In 2004 CRH paid €429 million (including €100 million of net debt) for their stake in Secil, but around five years later ended up in dispute with Semapa over the future of the joint venture.

Semapa have indicated that they intend to continue their proceedings in the Cour d'Appel (Court of Appeal) in Paris in relation to the award made by the Arbitral Tribunal.